Internal-control adoption
B52443 → 72649A → 84703S → 33550S. The newest report says the minimum internal-control standards had still not been adopted during 2024-2025.
JNRU · SBOA AUDIT TRAIL
NINETEEN YEARS.
ELEVEN RECEIPTS.
The source chain now runs from 2007 through 2025. It shows periods of ordinary audit comments, periods where the records were too poor for an opinion, years where required reports were not filed at all, and a modern repeat-finding chain that reaches the newest report.
11Bundled reports
4 years2013-2016 AFRs missing
5 years2018-2022 Gateway uploads: none
2026Debt paid after audit period
Severity changes over time
This is not one continuous identical finding.
The point is the chain, not flattening nineteen years into one accusation.
B37542 · examination
Annual reports for both years were not filed. SBOA also documented the $67,726 buyout of Utility Manager Jeffrey Fish's employment agreement, underfunded bond accounts, claims-approval problems and accounts-receivable reconciliation issues.
B37543 · annual financial report
The financial statements received an opinion, while report comments continued around late filing, bond ordinances, claims, unused vacation, records and reconciliations.
B44184 · opinion disclaimed
SBOA could not express an opinion because the Utilities did not properly reconcile cash to depositories and did not present support for $1,518,863 in recorded disbursements. The audit also found unsupported cash adjustments and major SEFA omissions.
B44414 · no financial statement to audit
No Annual Report, financial statement or Schedule of Expenditures of Federal Awards was presented. SBOA instead issued a compliance report addressing the available records.
No AFRs submitted
B52443 states that the District did not submit Annual Financial Reports for 2013, 2014, 2015 or 2016. As a result, no financial-statement audit opinion or compliance examination opinion was provided for those years.
B52442 + B52443
The financial audit returned, accompanied by ten examination findings. The supplemental report documented segregation-of-duties, reporting, materiality, internal-control, bond and time-card issues.
72649A · pervasive controls, Wooton agreements and missing records
The five-year engagement documents Wooton as Financial Controller / Utility Manager from January 1, 2018 through May 5, 2022; describes a 2017 consulting agreement and a second 2018 agreement at $144,000 per year; questions simultaneous W-2 wages and health benefits; and records missing ledgers, unreconciled periods, AFR errors, debt delinquency, missing contracts/minutes, absent Gateway uploads and other control failures.
84703A + 84703S
The financial statement received an unmodified regulatory-basis opinion. The supplemental report still found problems with controls, fund use, debt, internal-control adoption/certification, uploads, compensation, support, capital assets, materiality and official bonds.
33550A + 33550S
The financial statement again received an unmodified regulatory-basis opinion. The current supplemental report repeats several governance and recordkeeping issues, while the debt was subsequently paid in full in February 2026.
Repeat chains
The problems that kept getting a sequel.
Gateway said adopted. Audit said not.
72649A, 84703S and 33550S all address certification problems. The 2024-2025 report says Gateway certified the standards had been adopted when they had not.
Materiality threshold
B52443 → 72649A → 84703S → 33550S. The policy required by State Examiner Directive 2015-6 remained absent during the latest engagement period.
Official surety bond
B52443 → 72649A → 84703S → 33550S. The newest report again says statutory surety-bond requirements were not met.
Proper fund use
72649A → 84703S → 33550S. The latest audit still says the District did not maintain a funds ledger and reconstructed activity after the fact.
Capital-asset records
72649A → 84703S → 33550S. The newest report says the listing was incomplete, some values were replacement cost instead of acquisition value, and additions/deletions were not fully maintained.
Gateway uploads
Five years of zero became partial, then still incomplete.
2018-2022
None uploaded
72649A says the District failed to upload any required monthly or annual files for all five years.
2023
Annual set still incomplete
84703S says receipt detail, disbursement detail, the salary schedule/ordinance and annual funds ledger were not uploaded.
2024-2025
Required annual support still missing
33550S lists missing receipt detail, disbursement detail and accounts-payable/accounts-receivable schedule support for both years.
Special attention
Two historical money findings worth keeping visible.
$67,726 employment-agreement buyout
B37542 says two payments totaling $67,726 were made to Utility Manager Jeffrey Fish in addition to regular compensation. SBOA said no signed buyout agreement was presented, the additional compensation was not shown as discussed/approved in the board minutes, the checks predated board approval of the vouchers, and the payments were processed as vendor checks rather than payroll.
Consulting + $95,517 questioned compensation/benefits
72649A says Wooton was a full-time Controller/Manager in 2016 at $95,269 annually, entered a first consulting agreement sometime in 2017, and entered a second agreement on or about June 20, 2018 as president of Wooton Enterprises dba DB Wooton & Associates Consulting. That agreement paid $12,000 per month / $144,000 per year and said he would continue as Financial Controller / Utilities Manager, “but not as an employee.” Beginning in December 2019 he also received $320 per week in W-2 wages and health benefits. SBOA questioned $44,159 in those W-2 wages plus $51,358 in health premiums because it was not provided board documentation approving the additional employee compensation or separate duties.
Important: the audit's schedule of officials separately lists Wooton as Financial Controller / Utility Manager from January 1, 2018 through May 5, 2022. The public record does not support treating 2019-2021 as an unknown relationship period.
Cross-record conflict
The audit and the 2022 minutes disagree about bond payments.
This is a source conflict, not a license to pick whichever sentence makes the better headline.
Audit language
The 2024-2025 supplemental report says JNRU made no payments on the Waterworks Refunding Revenue Bonds between 2018 and 2022.
Board record
Treasurer Michael Gerth told the board the last bond payment was $20,000 in March 2020, then moved to make another $20,000 payment. The motion passed 4-0.
What resolves it: March 2020 bank statements, the canceled check or wire, bond/paying-agent ledger, and SBOA workpapers defining what “no payments” meant.
Source shelf
All eleven JNRU audit reports.
Open the PDFs directly. No interpretive middleman required.
B375422007-2008 · Examination reportAnnual reports for 2007 and 2008 were not filed; the report also addressed a $67,726 employment-agreement buyout, bond-fund requirements, claims approval and accounts-receivable reconciliation.
OPEN PDF →B375432009 · Annual financial report / audit2009 audit with comments on late annual reporting, bond-ordinance compliance, claims approval, unused vacation, records, bank reconciliations and accounts receivable.
OPEN PDF →B441842010-2011 · Financial statement / federal single auditSBOA disclaimed an opinion because cash was not properly reconciled and supporting documentation was not presented for $1,518,863 in recorded disbursements. The report also identified financial-statement and federal-award control findings.
OPEN PDF →B444142012 · Compliance reportNo 2012 annual report, financial statement or SEFA was presented. The report also addressed clearing-account balances, receivables, records, receipts/deposits and supporting documentation.
OPEN PDF →B524422017 · Financial statement audit2017 financial statement audit. SBOA specifically called attention to a going-concern emphasis in the independent auditor report.
OPEN PDF →B524432017 · Supplemental complianceTen examination findings, including segregation of duties, receipt/disbursement support, late reports, materiality threshold, internal controls, official bond, time cards and the absence of Annual Financial Reports for 2013-2016.
OPEN PDF →72649A2018-2022 · Compliance engagementA broad five-year compliance engagement with pervasive control findings. It documents missing ledgers, reconciliation problems, AFR errors, debt delinquency, questioned compensation/benefits costs, missing contracts, no Gateway monthly/annual uploads and other recurring issues.
OPEN PDF →84703A2023 · Financial statement audit2023 financial statement audit with an unmodified opinion on the SBOA regulatory basis. Year-end cash and investments were reported at $509,061.
OPEN PDF →84703S2023 · Supplemental compliance2023 supplemental report continued findings on controls, fund use, debt, internal-control adoption/certification, uploads, capital assets, materiality and official bonds. Five of 32 payroll items tested involved employees not included in an approved pay schedule.
OPEN PDF →33550A2024-2025 · Financial statement auditCurrent two-year financial audit. Regulatory-basis financial statements received an unmodified opinion. Ending cash and investments were $538,222 at December 31, 2025; the remaining $310,000 bond principal was paid in full February 24, 2026.
OPEN PDF →33550S2024-2025 · Supplemental complianceCurrent supplemental report repeats control, fund-accounting, internal-control adoption/certification, materiality, official-bond, upload and capital-asset issues. The District response describes post-period corrective actions and target dates.
OPEN PDF →